BBC NEWS Americas Africa Europe Middle East South Asia Asia Pacific
BBCi NEWS   SPORT   WEATHER   WORLD SERVICE   A-Z INDEX     

BBC News World Edition
 You are in: Business  
News Front Page
Africa
Americas
Asia-Pacific
Europe
Middle East
South Asia
UK
Business
E-Commerce
Economy
Market Data
Entertainment
Science/Nature
Technology
Health
-------------
Talking Point
-------------
Country Profiles
In Depth
-------------
Programmes
-------------
BBC Sport
BBC Weather
SERVICES
-------------
EDITIONS
Saturday, 8 December, 2001, 06:14 GMT
Enron chiefs sued for $25bn
The suit alleges insiders sold before the fall
By the BBC's North America business correspondent, Stephen Evans

Top executives at the huge American energy company Enron are being sued for $25bn.

One of the company's shareholders, the New York-based Amalgamated Bank, alleges that the executives sold millions of shares when they knew the plight of the company.


Enron is a grotesque fraud - a financial monstrosity of manipulation and falsification

Amalgamated Bank's lawsuit

The Amalgamated Bank of New York is a big shareholder in Enron and so lost many millions of dollars when the share price collapsed on the revelation of previously unknown debts of $13bn.

The bank alleges that executives at the top of Enron knew the true state of affairs and sold their shares before the price collapsed.

Fraud alleged

The bank is suing 29 current and former top Enron executives and board members, including Ken Lay, Enron chairman and chief executive, and Texas Senator Phil Gramm's wife, Wendy Gramm.

The former UK Minister, Lord Wakeham, is one of the non-executive directors of Enron, though there is no suggestion he acted improperly.

The Amalgamated Bank says that Enron was a "grotesque fraud".

Apart from banks and energy companies which had contracts with Enron, the other main losers are the employees, most of whom had to invest in Enron shares as part of their pension.

There is now a mass of litigation under way.

The problem is that Enron has drowned in debt, leaving nothing to pay anybody.

 WATCH/LISTEN
 ON THIS STORY
The BBC's Stephen Evans in New York
"The Amalgamated Bank says Enron was what it calls 'a grotesque fraud'"

Latest news

Background

UK fallout

CLICKABLE FACT FILES

TALKING POINT

AUDIO VIDEO
See also:

03 Dec 01 | Business
03 Dec 01 | Business
03 Dec 01 | Business
09 Nov 01 | Business
05 Oct 01 | Business
Internet links:


The BBC is not responsible for the content of external internet sites

Links to more Business stories are at the foot of the page.


E-mail this story to a friend

Links to more Business stories

© BBC ^^ Back to top

News Front Page | Africa | Americas | Asia-Pacific | Europe | Middle East |
South Asia | UK | Business | Entertainment | Science/Nature |
Technology | Health | Talking Point | Country Profiles | In Depth |
Programmes